Equivalent Variation Means

question 26

Multiple Choice

Equivalent variation means

• A)finding an equivalent change in income that puts a person at the same utility as a change in price would.
• B)equalizing excess burden across all markets.
• C)finding equal tax rates that ensure quantity demanded does not change.
• D)moving the same distance in either direction from a starting point on an indifference curve.

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Definitions:

Private Corporation

A corporation that is created by private persons and does not have government duties.

Certificate of Incorporation

An official document issued by a state government recognizing the formation of a corporation and outlining its basic details.

Authorized to Conduct Business

The status granted to a company or individual that fulfills the regulatory requirements to legally operate in a particular jurisdiction.

De Facto Corporation

A company that operates like a corporation and may be treated as one for legal purposes, despite not having completed formal incorporation steps.